Utility Week

28 | 16TH - 22ND NOVEMBER 2018 | UTILITY WEEK Customers Analysis C ustomer vulnerability is a major theme for all utilities. In its annual Water For All report, the Consumer Council for Water (CCWater) called on the water indus- try to pour more of its profits into helping those most in need aer it emerged that almost three million households in Eng- land and Wales consider their bills to be "unaffordable". What's more, local cost drivers mean that while the average household water and sewerage bill is £405, bills vary considerably from one geographic area to another – rang- ing from £102 to £251 for water bills and £169 to £324 for sewerage. For those receiving water and sewerage services from the same company the average combined bill ranges from £349 to £540. It should also be noted that a family of four, say, on a metered sup- ply could pay considerably more. Affordability is something Ofwat wants water companies to address with urgency and it forms one of the four pillars of its PR19 methodology. In its report, CCWater recognises that progress was made by companies last year in increasing the number of households in vulnerable circumstances receiving support, through methods such as customer-funded social tariffs. However, Tom Kiedrowski, managing director of Cedar Tree Advisory Service, says it is important to remember that vulnerability is not a "static position". "People dip in and out of being vulner- able and there are a variety of reasons for customers being vulnerable in the first place – including mental health issues, unemploy- ment or being on a low income. While all efforts to boost support for vulnerable con- sumers are welcome, effective support needs co-ordinated and considered responses by companies working with regulators and con- sumer groups," he says. Kiedrowski cites a study by Citizens Advice that identifies the lack of awareness of the schemes in place to support vulner- able customers as a key issue. "We only have to look at the terrible situ- ation last winter when few consumers in vulnerable circumstances were given extra support during the days they were without water," says Kiedrowski. "Companies need to be proactive in identifying those customers who are, oen temporarily, vulnerable rather than waiting on customers to identify them- selves. Companies need also to take a sensi- ble and sensitive approach in relation to debt collection, because those who are in debt to their water companies oen have debt issues elsewhere." So what are water companies doing to increase support for vulnerable consumers? Thames Water says it has "ambitious" plans to "significantly" increase the sup- port it offers as part of its five-year busi- ness plan. Its social tariff will be extended from around 49,000 to 200,000 households. Furthermore, discounts of up to 75 per cent will be provided, depending on individual circumstances. "Those in vulnerable situations will be further supported during operational inci- dents, with our priority services register increasing sevenfold to 400,000 people," a spokesperson for the company says. "And our customer assistance fund will allow an additional 15,000 customers to wipe clear their Thames Water debts. All of these pro- posals are ambitious, well costed and widely supported by our customers, who agree we should prioritise the most vulnerable." One thing CCWater is concerned about is that water companies aren't giving enough of their own money to help those in vulnerable circumstances. Andy White, senior policy manager at CCWater, said at the time the report was released: "We are calling on water companies to bridge the gap by dipping into their own pockets to expand the support available, rather than exhausting the good- will of their customers. People are far more willing to chip in when they see their water company playing its part." SES Water – which serves around 707,000 people in east Surrey and parts of West Sus- sex, west Kent and south London – says it already does this. The company has increased the number of people it assists, with nearly 10,000 cus- tomers on its water support scheme – double its current target of 5,000. Dan Lamb, head of retail services, says: "Most of our custom- ers do not struggle to pay their bill but we recognise that for some people it can be a challenge, which is why we set out to signifi- cantly increase the number of eligible people on our water support scheme. "As the scheme is funded through a £2 supplement from other customers, this does mean there has been a gap in funding, which we have bridged with money from our shareholders. This is set to increase as we aim to have more than 11,000 customers on the tariff by next year." Lamb adds that SES works with organi- sations such as Citizens Advice and has recruited more customer liaison officers to work in the communities it serves. United Utilities – which serves around seven million people in the North West – has a unique approach to helping customers in some of the most deprived areas of the UK. Head of income, sales and cash collection Michelle Atkins says the company has real- ised a lack of awareness of its schemes has been an issue. Therefore, she says, the com- pany has gone to great lengths to ensure it speaks in a "language they understand". The company also claims its policy of early intervention has allowed customers to get out of the danger of debt before they find themselves unable to pay. Atkins says: "We are looking at early interventions. One of the things our customers, agents and debt advisers told us is that we wait for customers to get into debt before we help them. What we are trying to do now is introduce new schemes and propositions that mean they can get help before they really need it." Water companies reach out Following a CCWater report calling for more help for those who are struggling to pay, Adam John hears what water companies are doing to support their most vulnerable customers. "While all efforts are welcome, effective support needs co-ordinated and considered responses by companies working with regulators and consumer groups" TOM KIEDROWSKI, MANAGING DIRECTOR, CEDAR TREE ADVISORY SERVICE

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